Vodafone India

From Wikipedia, the free encyclopedia

Vodafone India

Type Subsidiary (In talks to merge with Idea Cellular)

Industry Telecommunications

Headquarters Mumbai, Maharashtra, India

Services Mobile telephony

Wireless broadband

Revenue 425 billion (US$6.3 billion) (2015)[1]

Members 200.47 million[2] (August 2016)

Parent Vodafone Group

Website www.vodafone.in

Vodafone India is the second largest mobile network operator in India by subscriber base,
after Airtel with a market share of 18.42%.[3] It is headquartered in Mumbai, Maharashtra.[4] It has
approximately 200 million customers as of August 2016. It offers both prepaid and
postpaid GSM cellular phone coverage throughout India with better presence in the metros.
Vodafone India provides services on basis of 900 MHz and 1800 MHz digital GSM technology.
Vodafone India launched 3G services in the country in the JanuaryMarch quarter of 2011 and plans
to spend up to $500 million within two years on its 3G networks. It has launched its 4G services
in India starting from Kochi in Kerala in December 2015 and plans to expands its network to various
other cities in the country.

Contents
[hide]

1History
o 1.1Vodafone purchases Essar's stake
o 1.2Vodafone-Hutchison tax case
2Mobile services
o 2.13G
o 2.24G
o 2.3M-Pesa
 3Vodafone stores
4Subscriber base
5Awards and recognition
6Timeline
7See also
8References
9External links

History[edit]
Further information: Orange (India) and Hutchison Telecommunications International

Hutch logo until November 2005

Hutch logo from November 2005 until acquisition by Vodafone

Hutchison Max Telecom Ltd. (HMTL), a joint venture between Hutchison Whampoa and the Max
Group, was established on 21 February 1992.[5] The licence to operate in Mumbai (then Bombay)
circle was awarded to Hutchison Max by the Department of Telecommunications (DoT) in November
1994.[6] The cellular service branded "Max Touch" was launched the same year.[7] Hutchison Max
entered into the Delhi telecom circle in December 1999, the Kolkata circle in July 2000 and
the Gujarat circle in September 2000. Licences for these circles had initially been awarded by the
DoT in 1994, 1997 and 1995 respectively. Between 1992 and 2006, Hutchison acquired interests in
all 23 mobile telecom circles of India.[6]
HMTL rebranded "Max Touch" as Orange from 14 February 2000.[8] France Telecom (now Orange
S.A.) acquired the worldwide rights for the Orange brand from "Vodafone" in May 2000, and planned
to enforce its ownership of the brand in India. They made an offer to purchase part of Hutchison's
India operations, but Hutchison India declined to sell.[9] Hutchison retained the rights over the Orange
brand in India, but had to pay a royalty to France Telecom.[9] France Telecom left the Indian market
in December 2004.[10][11][12]
HMTL was renamed Hutchison Essar Limited (HEL) in August 2005.[13] In Delhi, Uttar Pradesh
(East), Rajasthan and Haryana, Essar Group was the major partner. But later Hutch took the
majority stake. By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison
Whampoa had acquired interests in six mobile telecommunications operators providing service in 13
of India's 23 licence areas and following the completion of the acquisition of BPL Mobile that number
increased to 16. In 2006, it announced the acquisition of a company (Essar Spacetel A subsidiary
of Essar Group) that held licence applications for the seven remaining licence areas. Initially, the
company grew its business in the largest wireless markets in India in cities like Mumbai, Delhi and
Kolkata. In these densely populated urban areas it was able to establish a robust network, well-
known brand and large distribution network all vital to long-term success in India. Then it also
targeted business users and high-end post-paid customers which helped Hutchison Essar to
consistently generate a higher Average Revenue Per User (ARPU) than its competitors. By adopting
this focused growth plan, it was able to establish leading positions in India's largest markets
providing the resources to expand its footprint nationwide. In February 2007, Hutchison Telecom
announced that it had entered into a binding agreement with a subsidiary of Vodafone Group Plc to
sell its 67% direct and indirect equity and loan interests in Hutchison Essar Limited for a total cash
consideration (before costs, expenses and interests) of approximately $11.1 billion.[citation needed]

A 'You and I' print advertisement of Hutch featuring Cheeka (dog)

Hutch was often praised for its award winning advertisements which all follow a clean, minimalist
look. A recurrent theme is that its message "Hi" stands out visibly though it uses only white letters on
red background. Another successful ad campaign in 2003 featured a pug named Cheeka following a
boy around in unlikely places, with the tagline, "Wherever you go, our network follows." The simple
yet powerful advertisement campaigns won it many admirers. Advertisements featuring the pug were
continued by Vodafone even after rebranding. The brand subsequently introduced ZooZoos which
gained even higher popularity than was created by the Pug. Vodafone's creative agency is O&M
while Harit Nagpal was the Marketing Director during the various phases of its brand evolution.[citation
needed]

Vodafone purchases Essar's stake[edit]

In July 2011, Vodafone Group bought the mobile phone business of its partner Essar for $5.46
billion. This meant Vodafone owns 74% of Essar.[14] On 11 February 2007, Vodafone agreed to
acquire the controlling interest of 67% held by Li Ka Shing Holdings in Hutch-Essar for US$11.1
billion, pipping Reliance Communications, Hinduja Group, and Essar Group, which is the owner of
the remaining 33%. The whole company was valued at USD 18.8 billion.[15] The transaction closed on
8 May 2007. In April 2014, India based Piramal Group sold its 11% Stake in Vodafone India to Prime
Metals, an indirect subsidiary of Vodafone Group.[16]
Vodafone-Hutchison tax case[edit]
Vodafone was embroiled in a $2.5 billion tax dispute with the Indian Income Tax Department over its
purchase of Hutchison Essar Telecom services in April 2007. It was being alleged by the Indian Tax
authorities that the transaction involved purchase of assets of an Indian Company, and therefore the
transaction, or part thereof was liable to be taxed in India.[17]
Vodafone Group Plc. entered India in 2007 through a subsidiary based in the Netherlands, which
acquired Hutchison Telecommunications International Ltds (HTIL) stake in Hutchison Essar Ltd
(HEL)the joint venture that held and operated telecom licences in India. This Cayman
Islands transaction, along with several related agreements, gave Vodafone control over 67% of HEL
and extinguished Hong Kong-based Hutchisons rights of control in India, a deal that cost the worlds
largest telco $11.2 billion at the time.[18]
In January 2012, the Indian Supreme Court passed the judgement in favour of Vodafone, saying that
the Indian Income tax department had "no jurisdiction" to levy tax on overseas transaction between
companies incorporated outside India. However, Indian government thinks otherwise. It believes that
if an Indian company, Hutchison India Ltd., conducts a financial transaction, government should get
its tax out of it. Therefore, in 2012, India changed its Income Tax Act retroactively and made sure
that any company, in similar circumstances, is not able to avoid tax by operating out of tax-havens
like Cayman Islands or Lichtenstein. In May 2012, Indian authorities confirmed that they were going
to charge Vodafone about 20000 crore (US $3.3 billion) in tax and fines. The second phase of the
dispute is about to start.[19] The Bombay high court on Thursday directed the Income-Tax Appellate
Tribunal (ITAT) to hear a Rs.8,600 crore transfer-pricing tax dispute relating to the Indian arm of
Vodafone Group Plc from 21 February on a daily basis till a final order is passed.[citation needed]

Mobile services[edit]
3G[edit]
On 19 May 2015, the 3G spectrum auction in India ended. Vodafone paid 11617.86 million (the
second highest amount in the auctions) for spectrum in 9 circles. The circles it will provide 3G in
are Kolkata, Gujarat, Haryana, Delhi, Maharashtra & Goa, Mumbai, Tamil Nadu, Uttar
Pradesh (East) and West Bengal.[20]
On 23 June 2011 Vodafone launched 3G service in Kerala by joining with Idea in an Intra Circle
Roaming agreement. Initially Vodafone 3G services will be available in the following cities in Kerala
Ernakulam, Aluva, Palakkad, Thrissur, Calicut, Koyilandy, Alappuzha, Cherthala, Malappuram and
Manjeri. On 28 June 2012, Vodafone launched a new international roaming package under which
the users shall have not to pay multiple rentals in the countries they are visiting.[21]
4G[edit]
On 8 December 2015, Vodafone announced the roll out of its 4G network in India on 1800 MHz
band, starting from Kochi, Kerala.[22] After that vodafone has launched 4G services
in Kolkata, Mumbai, Delhi followed by Kerala and Karnataka. Vodafone has launched 4G services
in Tamil Nadu by 2100 MHz spectrum. On 5th january 2017, World's Largest 4G
Network Vodafone Launched its 4G services In Guwahati Followed
By Tinsukia, Sibsagar , Bongaigaon In Assam Circle.
VoLTE-Vodafone is expected to launch VoLTE service in this year followed
by Reliance Jio and Bharti Airtel.
M-Pesa[edit]
M-Pesa, branded as M-Paisa (the paisa being the largely unused subunit of the Indian rupee), was
launched in India[23][24] as a close partnership with HDFC bank in November 2011.[25] Development for
the bank began as early as 2008. The service continues to operate in a limited geographical area in
India. Vodafone India had partnered with both HDFC and ICICI,[26] ICICI launched M-Pesa on April
18, 2013.[27] Vodafone plans to rollout this service throughout India.[28] The user needs to register for
this service by paying 100 Rupees and there are charges levied per M-Pesa transaction.[29][30] they
can get recharge mobiles and DTH from m-pesa and also they can transfer the money to other users
and other banks also.

Vodafone stores[edit]
As of 3 September 2013, there were a total of 16 Vodafone Angel Stores in 14 states, all staffed
entirely by women. Stores currently operate in Agra, Ahmedabad, Bhubaneshwar, Chennai, Delhi,
Goa, Haryana, Hyderabad, Jaipur, Kerala, Kolkata, Lucknow, Mumbai, Mysore, Pune, Shillong,
Vadodara and Rajkot.[31]
According to Marten Pieters, Managing Director and CEO, Vodafone India, "The Angel Stores are a
part of Vodafones commitment to provide our women employees with one of the most secure and
productive work environment. Additionally, our women customers feel more welcomed while visiting
the store."[32]

Subscriber base[edit]
Following is the Vodafone India subscriber base statistics as on September, 2014.[33]

Subscriber Base Statistics as on September, 2015

Telecom Cicle No. of Subscribers

Gujarat 15,801,117

Uttar Pradesh(East) 14,526,236

Maharashtra 12,977,123

West Bengal 11,165,667

Tamil Nadu 9,777,927

Rajasthan 8,565,366

Uttar Pradesh(West) 8,999,073

Andhra Pradesh 2,224,689

Delhi 8,449,120

Goa 7,134,576

Karnataka 6,452,620

Kerala 6,067,506

Bihar 6,381,278

Kolkata 4,084,284

Punjab 4,309,853

Haryana 4,437,015

Madhya Pradesh & Chhattisgarh 4,101,877

Chennai 2,091,654

Odisha 2,789,575

Assam (North East) 2,188,073

North East 928,563

Jammu & Kashmir 666,009

 Himachal Pradesh 475,329

Mumbai 6,160,353

Total number of Vodafone India Subscribers : 141,519,840, i.e. 21.54% of the

total 657,158,013 Indian mobile phone subscribers.

Awards and recognition[edit]

The Brand Trust Report,[34] 2011 published by Trust Research Advisory has ranked Vodafone[35] as
the 16th most trusted brand in India.

Timeline[edit]
This section contains embedded lists that may be better presented
using prose. You can help by converting the list or lists to prose,
if appropriate. Editing help is available. (December 2014) (Learn how and when to
remove this template message)

Year

1992 Hutchison Whampoa and MAX group establish Hutchison Max.[36]

Acquisition of Delhi operations and entry into Calcutta (now Kolkata) and Gujarat markets through
2000
Essar acquisition[citation needed]

2001 Won auction for licences to operate GSM services in Karnataka, Andhra Pradesh and Chennai[citation
needed]

Acquired AirCel Digilink (ADIL ESSAR Subsidiary) which operated in Rajastan, Uttar Pradesh
2003
East and Haryana telecom circles and rebranded it 'Hutch'.[citation needed]

Launched in three additional telecom circles of India namely Punjab, Uttar Pradesh (West) and West
2004
Bengal.[citation needed]

Acquired BPL Mobile operations in 3 circles. This left BPL with operations only in Mumbai, where
2005
it still operates under the brand 'Loop Mobile'.[citation needed]
 Vodafone acquires a 67% stake in Hutchison Essar for $10.7 billion. The company is renamed
2007
Vodafone Essar. 'Hutch' is rebranded to 'Vodafone'.[citation needed]

Vodafone acquires the licences in remaining 7 circles and starts its pending operations in Madhya
2008
Pradesh circle, as well as in Orissa, Assam, North East and Bihar.[citation needed]

Vodafone Group buys out its partner Essar from its Indian mobile phone business. It paid $5.46
2011 billion to take Essar out of its 33% stake in the Indian subsidiary. It left Vodafone owning 74% of
the Indian business.[citation needed]

2014 On 11 April Vodafone acquires 100 percent stake in Vodafone India.[citation needed]

2014 On 6 August Vodafone India launches Vodafone RED 4.New Postpaid plans across India.[citation needed]

2015 On 17 January Vodafone launches its iPhone plans across India.